EX-99.1 2 nwbi2017-12x31erxexx991.htm EXHIBIT 99.1 Exhibit


EXHIBIT 99.1
 
PRESS RELEASE OF NORTHWEST BANCSHARES, INC.
EARNINGS RELEASE
 
FOR IMMEDIATE RELEASE
 
Contact:
William J. Wagner, Chairman and Chief Executive Officer (814) 726-2140
 
Ronald J. Seiffert, President and Chief Operating Officer (814) 726-2140
 
William W. Harvey, Jr., Senior Executive Vice President and Chief Financial Officer (814) 726-2140
 
Northwest Bancshares, Inc. Announces Fourth Quarter 2017 Earnings and Quarterly Dividend Increase
 
Warren, Pennsylvania — January 22, 2018
 
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2017 of $22.1 million, or $0.22 per diluted share. This represents a decrease of $2.4 million, or 9.6%, compared to the same quarter last year when net income was $24.5 million or $0.24 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended December 31, 2017 were 7.31% and 0.94% compared to 8.37% and 1.01% for the same quarter last year. 

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per share payable on February 15, 2018, to shareholders of record as of February 1, 2018. This represents a 6.25% increase over the prior quarter and is the 93rd consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of December 31, 2017, this dividend represents an annualized yield of approximately 4.1%.

In making this announcement, William J. Wagner, Chairman and CEO, noted, "2017 was a year of significant restructuring for our company. With a goal of reducing operating expenses, improving efficiency and narrowing our business focus, we divested our Maryland offices, closed our consumer finance subsidiary, sold our retirement services business, consolidated our wealth management platforms and achieved full integration of our recent acquisitions in Ohio and New York. While these initiatives negatively impacted earnings in 2017, we expect that they will provide a meaningful reduction in our expense ratios in the years ahead. We were pleased to realize continued improvement in net interest margin during 2017 resulting primarily from commercial loan growth of 5% accompanied by 11% growth in noninterest bearing checking accounts. With that, our current margin of 3.93% represents an historic high for our institution. Looking ahead, our company will be primarily focused on improving loan growth and operating efficiency in an effort to continue to improve our company’s return on assets."

Net interest income increased by $1.3 million, or 1.6%, to $84.2 million for the quarter ended December 31, 2017, from $82.9 million for the quarter ended December 31, 2016. This increase is due primarily to a $1.5 million, or 1.7%, increase in interest income on loans receivable and an $850,000, or 39.2% increase in interest income on mortgage-backed securities. These increases were primarily due to increases of $16.8 million and $98.3 million in the average balances of loans and mortgage-backed securities, respectively. Additionally, the average yield on loans and mortgage-backed securities increased by 5 and 29 basis points, respectively, over the prior year.

     The provision for loan losses increased by $4.4 million, to $6.5 million for the quarter ended December 31, 2017, from $2.1 million for the quarter ended December 31, 2016. This increase is due primarily to higher provisions for consumer loans, which were related to the July 2017 closure of the Company's consumer finance subsidiary, as credit quality in other components of the loan portfolio improved. The percentage of total delinquent loans to total loans decreased to 1.51% at December 31, 2017 from 1.61% at December 31, 2016 and total nonaccrual loans decreased by $15.0 million, or 19.0%, to $64.5 million at December 31, 2017 from $79.5 million at December 31, 2016.
     




Noninterest income decreased by $1.9 million, or 7.7%, to $22.9 million for the quarter ended December 31, 2017, from $24.8 million for the quarter ended December 31, 2016. Contributing to this decrease was a $2.1 million decrease in mortgage banking income relating to a substantial decrease in the amount of loans sold into the secondary market this year versus the prior year. Additionally, the Company realized a net loss of $369,000 on the sale of investments during the quarter while realizing a net profit of $213,000 a year ago. The loss incurred in the current year related to the sale of two pooled trust preferred securities to take advantage of the recent changes in the federal tax rates. Partially offsetting these decreases was an increase in income from bank owned life insurance of $1.0 million as a result of death benefits received during the quarter.

     Noninterest expense increased by $3.1 million, or 4.6%, to $71.9 million for the quarter ended December 31, 2017, from $68.8 million for the quarter ended December 31, 2016. This increase resulted primarily from a $2.2 million, or 6.1%, increase in compensation and employee benefits due primarily to increases in the cost of health insurance and other employee benefits. Also contributing to the increase was an increase of $857,000 in professional services due primarily to ongoing efforts to comply with the CECL standard effective January 1, 2020.

Income tax expense decreased by $5.8 million, or 46.8%, to $6.6 million for the quarter ended December 31, 2017, from $12.4 million for the quarter ended December 31, 2016. This decrease is due primarily to a decrease in income before taxes of $8.1 million and the impact of the Tax Cuts and Jobs Act of 2017, which was signed into law on December 22, 2017. When enacted, the tax law change will decrease the corporate tax rate from 35.0% to 21.0%. As a result, the value of the Company's net deferred tax liability decreased by $3.1 million, which had the effect of decreasing current period tax expense.

Net income for the year ended December 31, 2017 was $94.5 million, or $0.92 per diluted share, which represents an increase of $44.8 million, or 90.2%, compared to the year ended December 31, 2016, when net income was $49.7 million, or $0.49 per diluted share. The returns on average shareholders’ equity and average assets for the year ended December 31, 2017 were 7.95% and 0.99%, respectively, compared to 4.28% and 0.55% for the same period last year.  This increase is due primarily to the sale of the Company's Maryland offices at a profit of $17.2 million during 2017 and also to a $37.0 million penalty incurred from the prepayment of FHLB borrowings during 2016.

Non-GAAP net income for the year ended December 31, 2017, which excludes the after-tax impact of the gain on sale of the Maryland offices of $10.3 million and after-tax restructuring expenses of $2.7 million as well as the aforementioned $3.1 million tax benefit was $83.7 million, or $0.83 per diluted share. Non-GAAP net income for the year ended December 31, 2016, which excludes the after-tax impact of the FHLB prepayment penalty, restructuring and acquisition expenses, and ESOP termination expenses totaling $32.6 million, was $82.3 million, or $0.82 per diluted share. For more information, see "Reconciliation of Non-GAAP to GAAP Net Income" within this press release.

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 162 full-service community banking offices and ten free standing drive-through facilities in Pennsylvania, New York, and Ohio. Northwest Bancshares, Inc.’s common stock is listed on the NASDAQ Global Select Market (“NWBI”). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.
 
#                      #                      #
 
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; and (7) increased risk associated with commercial real-estate and business loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.




Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except per share amounts)
 
December 31,
2017
 
September 30,
2017
 
December 31,
2016
Assets
 

 
 

 
 
Cash and cash equivalents
$
77,710

 
165,676

 
389,867

Marketable securities available-for-sale (amortized cost of $800,094, $867,311 and $825,552 respectively)
792,535

 
869,481

 
826,200

Marketable securities held-to-maturity (fair value of $29,667, $32,282 and $20,426 respectively)
29,678

 
31,961

 
19,978

Total cash and cash equivalents and marketable securities
899,923


1,067,118


1,236,045

 
 
 
 
 
 
Residential mortgage loans held-for-sale
3,128

 
1,382

 
9,625

Residential mortgage loans
2,773,075

 
2,741,844

 
2,688,541

Home equity loans
1,310,355

 
1,313,435

 
1,345,370

Consumer loans
671,389

 
673,920

 
642,961

Commercial real estate loans
2,454,726

 
2,398,886

 
2,342,089

Commercial loans
580,736

 
596,671

 
528,761

Total loans receivable
7,793,409


7,726,138


7,557,347

Allowance for loan losses
(56,795
)
 
(56,927
)
 
(60,939
)
Loans receivable, net
7,736,614


7,669,211


7,496,408

 
 
 
 
 
 
Assets held-for-sale
—

 
—

 
152,528

Federal Home Loan Bank stock, at cost
11,733

 
7,984

 
7,390

Accrued interest receivable
23,352

 
22,802

 
21,699

Real estate owned, net
5,666

 
5,462

 
4,889

Premises and equipment, net
151,944

 
152,761

 
161,185

Bank owned life insurance
171,547

 
173,096

 
171,449

Goodwill
307,420

 
307,420

 
307,420

Other intangible assets
25,669

 
27,244

 
32,433

Other assets
30,066

 
26,716

 
32,194

Total assets
$
9,363,934

 
9,459,814

 
9,623,640

 
 
 
 
 
 
Liabilities and Shareholders’ equity
 

 
 

 
 
Liabilities
 

 
 

 
 
Noninterest-bearing demand deposits
$
1,610,409

 
1,625,189

 
1,448,972

Interest-bearing demand deposits
1,442,928

 
1,451,818

 
1,428,317

Money market deposit accounts
1,707,450

 
1,759,395

 
1,841,567

Savings deposits
1,653,579

 
1,669,782

 
1,622,879

Time deposits
1,412,623

 
1,435,861

 
1,540,586

Total deposits
7,826,989


7,942,045


7,882,321

 
 
 
 
 
 
Liabilities held-for-sale
—

 
—

 
215,657

Borrowed funds
108,238

 
115,388

 
142,899

Advances by borrowers for taxes and insurance
40,825

 
21,864

 
36,879

Accrued interest payable
460

 
518

 
635

Other liabilities
68,485

 
62,939

 
63,373

Junior subordinated debentures
111,213

 
111,213

 
111,213

Total liabilities
8,156,210


8,253,967


8,452,977

 
 
 
 
 
 
Shareholders’ equity
 

 
 

 
 
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued
—

 
—

 
—

Common stock, $0.01 par value: 500,000,000 shares authorized, shares, 102,687,811 shares, 102,565,667,and 101,699,406 issued and outstanding, respectively
1,027

 
1,026

 
1,017

Paid-in-capital
730,719

 
728,163

 
718,834

Retained earnings
508,058

 
502,265

 
478,803

Accumulated other comprehensive loss
(32,080
)
 
(25,607
)
 
(27,991
)
Total shareholders’ equity
1,207,724


1,205,847


1,170,663

Total liabilities and shareholders’ equity
$
9,363,934


$
9,459,814


$
9,623,640

 
 
 
 
 
 
Equity to assets
12.90
%
 
12.75
%
 
12.16
%
Tangible common equity to assets
9.68
%
 
9.55
%
 
8.95
%
Book value per share
$
11.76

 
11.76

 
11.51

Tangible book value per share
$
8.52

 
8.49

 
8.17

Closing market price per share
$
16.73

 
17.27

 
18.03

Full time equivalent employees
2,106

 
2,137

 
2,306

Number of banking offices
172

 
173

 
176





Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
 
Quarter ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
2017
 
2017
 
2017
 
2017
 
2016
Interest income:
 

 
 

 
 

 
 

 
 
Loans receivable
$
87,154

 
85,373

 
84,714

 
82,751

 
85,669

Mortgage-backed securities
3,016

 
3,118

 
2,987

 
2,222

 
2,166

Taxable investment securities
805

 
957

 
981

 
1,006

 
988

Tax-free investment securities
449

 
476

 
529

 
569

 
625

FHLB dividends
78

 
63

 
50

 
59

 
285

Interest-earning deposits
59

 
244

 
536

 
660

 
300

Total interest income
91,561


90,231


89,797


87,267


90,033

 
 
 
 
 
 
 
 
 
 
Interest expense:
 

 
 

 
 

 
 

 
 

Deposits
5,971

 
5,795

 
5,826

 
5,465

 
5,859

Borrowed funds
1,350

 
1,199

 
1,240

 
1,225

 
1,232

Total interest expense
7,321


6,994


7,066


6,690


7,091

 
 
 
 
 
 
 
 
 
 
Net interest income
84,240

 
83,237

 
82,731

 
80,577

 
82,942

Provision for loan losses
6,525

 
3,027

 
5,562

 
4,637

 
2,145

Net interest income after provision for loan losses
77,715


80,210


77,169


75,940


80,797

 
 
 
 
 
 
 
 
 
 
Noninterest income:
 

 
 

 
 

 
 

 
 

Gain/(loss) on sale of investments
(369
)
 
1,497

 
3

 
17

 
213

Service charges and fees
12,527

 
12,724

 
12,749

 
11,717

 
12,406

Trust and other financial services income
4,290

 
4,793

 
4,600

 
4,304

 
4,131

Insurance commission income
1,874

 
1,992

 
2,353

 
2,794

 
2,499

Gain/ (loss) on real estate owned, net
(307
)
 
(193
)
 
(230
)
 
(67
)
 
164

Income from bank owned life insurance
2,295

 
1,078

 
1,652

 
1,068

 
1,281

Mortgage banking income
225

 
519

 
434

 
240

 
2,344

Gain on sale of offices
—

 
—

 
17,186

 
—

 
—

Other operating income
2,370

 
2,184

 
2,730

 
1,431

 
1,781

Total noninterest income
22,905


24,594


41,477


21,504


24,819

 
 
 
 
 
 
 
 
 
 
Noninterest expense:
 

 
 

 
 

 
 

 
 

Compensation and employee benefits
38,776

 
36,039

 
37,658

 
37,755

 
36,562

Premises and occupancy costs
7,293

 
6,951

 
7,103

 
7,516

 
7,228

Office operations
4,011

 
3,939

 
4,170

 
4,222

 
4,395

Collections expense
1,179

 
568

 
553

 
549

 
437

Processing expenses
9,888

 
9,650

 
9,639

 
9,909

 
9,429

Marketing expenses
2,125

 
2,488

 
2,846

 
2,148

 
2,181

Federal deposit insurance premiums
724

 
771

 
856

 
1,167

 
475

Professional services
2,945

 
2,321

 
2,452

 
2,575

 
2,088

Amortization of intangible assets
1,575

 
1,691

 
1,749

 
1,749

 
1,806

Real estate owned expense
195

 
310

 
217

 
282

 
192

Restructuring/ acquisition expense
164

 
1,398

 
2,634

 
223

 
1,009

Other expense
3,021

 
2,673

 
3,385

 
3,551

 
2,959

Total noninterest expense
71,896


68,799


73,262


71,646


68,761

Income before income taxes
28,724


36,005


45,384


25,798


36,855

 
 
 
 
 
 
 
 
 
 
Income tax expense
6,576

 
12,414

 
14,402

 
8,052

 
12,361

Net income
$
22,148


23,591


30,982


17,746


24,494

 
 
 
 
 
 
 
 
 
 
Basic earnings per share
$
0.22

 
0.23

 
0.31

 
0.18

 
0.24

Diluted earnings per share
$
0.22

 
0.23

 
0.30

 
0.17

 
0.24

 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
101,293,307

 
101,163,534

 
100,950,772

 
100,653,277

 
100,219,370

Weighted average common shares outstanding - diluted
102,643,726

 
102,564,476

 
102,449,693

 
102,480,549

 
102,089,892

 
 
 
 
 
 
 
 
 
 
Annualized return on average equity
7.31
%
 
7.81
%
 
10.48
%
 
6.15
%
 
8.37
%
Annualized return on average assets
0.94
%
 
0.99
%
 
1.30
%
 
0.75
%
 
1.01
%
Annualized return on tangible common equity
10.05
%
 
10.74
%
 
14.44
%
 
8.57
%
 
11.73
%
 
 
 
 
 
 
 
 
 
 
Efficiency ratio *
65.48
%
 
60.94
%

64.36
%
 
68.25
%

61.20
%
Annualized noninterest expense to average assets *
2.97
%
 
2.76
%
 
2.89
%
 
2.94
%
 
2.73
%

* Excludes gain on sale of offices, restructuring/acquisition expenses, and amortization of intangible assets (non-GAAP).




Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
 
 
Year ended December 31,
 
2017
 
2016
Interest income:
 

 
 

Loans receivable
$
339,992

 
329,039

Mortgage-backed securities
11,343

 
8,540

Taxable investment securities
3,749

 
3,409

Tax-free investment securities
2,023

 
2,732

FHLB dividends
250

 
1,371

Interest-earning deposits
1,499

 
543

Total interest income
358,856


345,634

 
 
 
 
Interest expense:
 

 
 

Deposits
23,057

 
23,465

Borrowed funds
5,014

 
14,834

Total interest expense
28,071


38,299

 
 
 
 
Net interest income
330,785


307,335

Provision for loan losses
19,751

 
13,542

Net interest income after provision for loan losses
311,034


293,793

 
 
 
 
Noninterest income:
 

 
 

Gain on sale of investments
1,148

 
625

Service charges and fees
49,717

 
44,113

Trust and other financial services income
17,987

 
14,103

Insurance commission income
9,013

 
10,522

Loss on real estate owned, net
(797
)
 
(39
)
Income from bank owned life insurance
6,093

 
5,361

Mortgage banking income
1,418

 
4,894

Gain on sale of offices
17,186

 
—

Other operating income
8,715

 
5,781

Total noninterest income
110,480


85,360

 
 
 
 
Noninterest expense:
 

 
 

Compensation and employee benefits
150,228

 
140,927

Premises and occupancy costs
28,863

 
26,134

Office operations
16,342

 
14,898

Collections expense
2,849

 
2,431

Processing expenses
39,086

 
34,859

Marketing expenses
9,607

 
8,852

Federal deposit insurance premiums
3,518

 
4,404

Professional services
10,293

 
7,865

Amortization of intangible assets
6,764

 
4,259

Real estate owned expense
1,004

 
1,004

Restructuring/ acquisition expense
4,419

 
12,213

FHLB prepayment penalty
—

 
36,978

Other expense
12,630

 
13,014

Total noninterest expense
285,603


307,838

Income before income taxes
135,911


71,315

 
 
 
 
Income tax expense
41,444

 
21,648

Net income
$
94,467


$
49,667

 
 
 
 
Basic earnings per share
$
0.94

 
0.50

Diluted earnings per share
$
0.92

 
0.49

 
 
 
 
Weighted average common shares outstanding - basic
101,015,083

 
99,439,174

Weighted average common shares outstanding - diluted
102,564,905

 
100,664,688

 
 
 
 
Annualized return on average equity
7.95
%
 
4.28
%
Annualized return on average assets
0.99
%
 
0.55
%
Annualized return on tangible common equity
10.80
%
 
5.98
%
 
 
 
 
Efficiency ratio *
64.71
%
 
64.78
%
Annualized noninterest expense to average assets *
2.89
%
 
2.79
%

* Excludes gain on sale of offices, restructuring/acquisition expenses, FHLB prepayment penalty, and amortization of intangible assets (non-GAAP).




Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP to GAAP Net Income (Unaudited)  *
(Dollars in thousands, except per share amounts)
 
 
 
Year ended
December 31,
 
 
2017
 
2016
Operating results (non-GAAP):
 
 

 
 

Net interest income
 
$
330,785

 
307,335

Provision for loan losses
 
19,751

 
13,542

Noninterest income
 
93,294

 
85,360

Noninterest expense
 
281,184

 
253,510

Income taxes
 
39,409

 
43,379

Net operating income (non-GAAP)
 
$
83,735

 
82,264

Diluted earnings per share (non-GAAP)
 
$
0.83

 
0.82

 
 
 
 
 
Average equity
 
$
1,188,787

 
1,159,791

Average assets
 
9,502,518

 
9,111,587

Annualized ROE (non-GAAP)
 
7.04
%
 
7.09
%
Annualized ROA (non-GAAP)
 
0.88
%
 
0.90
%
 
 
 
 
 
Reconciliation of net operating income to net income:
 
 

 
 

Net operating income (non-GAAP)
 
$
83,735

 
82,264

Nonoperating income and expenses
 
 

 
 

Gain on sale of offices, net of tax
 
10,311

 
—

Restructuring/ acquisition expenses, net of tax
 
(2,651
)
 
(7,330
)
Stock-based compensation expense - ESOP termination, net of tax
 
—

 
(3,081
)
FHLB prepayment penalty, net of tax
 
—

 
(22,186
)
Tax benefit from the Tax Cuts and Jobs Act of 2017
 
3,072

 
—

Net income (GAAP)
 
$
94,467

 
49,667

Diluted earnings per share (GAAP)
 
$
0.92

 
0.49

 
 
 
 
 
Annualized ROE (GAAP)
 
7.95
%
 
4.28
%
Annualized ROA (GAAP)
 
0.99
%
 
0.55
%
 * The table summarizes the Company’s results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude certain income and expenses, net of tax benefit and cost. The net tax effect was calculated using statutory tax rates of approximately 40%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.


 




Northwest Bancshares, Inc. and Subsidiaries
Asset quality (Unaudited)
(Dollars in thousands)
 
 
December 31,
2017
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
Nonaccrual loans current:
 

 
 

 
 

 
 

 
 

Residential mortgage loans
$
70

 
318

 
841

 
1,864

 
2,109

Home equity loans
615

 
439

 
158

 
1,244

 
1,451

Consumer finance loans
—

 
1

 
—

 
—

 
—

Consumer loans
317

 
259

 
379

 
633

 
520

Commercial real estate loans
10,080

 
10,646

 
16,189

 
13,347

 
13,955

Commercial loans
4,178

 
4,098

 
5,262

 
5,335

 
5,361

Total nonaccrual loans current
$
15,260

 
15,761

 
22,829

 
22,423

 
23,396

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans delinquent 30 days to 59 days:
 

 
 

 
 

 
 

 
 

Residential mortgage loans
$
509

 
200

 
181

 
1,001

 
1,464

Home equity loans
167

 
466

 
164

 
328

 
422

Consumer finance loans
—

 
—

 
—

 
—

 
—

Consumer loans
239

 
200

 
169

 
218

 
400

Commercial real estate loans
1,928

 
597

 
474

 
1,970

 
3,478

Commercial loans
25

 
—

 
32

 
328

 
145

Total nonaccrual loans delinquent 30 days to 59 days
$
2,868

 
1,463

 
1,020

 
3,845

 
5,909

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans delinquent 60 days to 89 days:
 

 
 

 
 

 
 

 
 

Residential mortgage loans
$
703

 
892

 
896

 
704

 
1,522

Home equity loans
874

 
499

 
326

 
408

 
440

Consumer finance loans
—

 
—

 
—

 
—

 
—

Consumer loans
500

 
405

 
342

 
242

 
366

Commercial real estate loans
1,104

 
5,895

 
2,233

 
540

 
2,027

Commercial loans
69

 
3

 
—

 
23

 
695

Total nonaccrual loans delinquent 60 days to 89 days
$
3,250

 
7,694

 
3,797

 
1,917

 
5,050

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans delinquent 90 days or more:
 

 
 

 
 

 
 

 
 

Residential mortgage loans
$
13,509

 
11,785

 
11,637

 
11,911

 
13,169

Home equity loans
7,251

 
6,295

 
5,744

 
6,194

 
5,552

Consumer finance loans
199

 
332

 
536

 
471

 
743

Consumer loans
3,617

 
3,244

 
2,273

 
2,888

 
3,080

Commercial real estate loans
15,361

 
22,583

 
21,295

 
20,897

 
19,264

Commercial loans
3,140

 
4,177

 
3,642

 
2,744

 
3,373

Total nonaccrual loans delinquent 90 days or more
$
43,077

 
48,416

 
45,127

 
45,105

 
45,181

 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans
$
64,455

 
73,334

 
72,773

 
73,290

 
79,536

 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans
$
64,455

 
73,334

 
72,773

 
73,290

 
79,536

Loans 90 days past maturity and still accruing
502

 
398

 
182

 
265

 
649

Nonperforming loans
64,957

 
73,732

 
72,955

 
73,555

 
80,185

Real estate owned, net
5,666

 
5,462

 
6,030

 
6,242

 
4,889

Nonperforming assets
$
70,623

 
79,194

 
78,985

 
79,797

 
85,074

 
 
 
 
 
 
 
 
 
 
Nonaccrual troubled debt restructuring *
$
12,285

 
17,809

 
17,873

 
18,273

 
16,346

Accruing troubled debt restructuring
19,819

 
20,660

 
23,987

 
25,305

 
26,580

Total troubled debt restructuring
$
32,104

 
38,469

 
41,860

 
43,578

 
42,926

 
 
 
 
 
 
 
 
 
 
Nonperforming loans to total loans
0.83
%
 
0.95
%
 
0.95
%
 
0.97
%
 
1.06
%
Nonperforming assets to total assets
0.75
%
 
0.84
%
 
0.83
%
 
0.82
%
 
0.88
%
Allowance for loan losses to total loans
0.73
%
 
0.74
%
 
0.82
%
 
0.81
%
 
0.81
%
Allowance for loan losses to nonperforming loans
87.43
%
 
77.16
%
 
86.20
%
 
83.07
%
 
76.00
%
* Amounts included in nonperforming loans above.




Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators (Unaudited)
(Dollars in thousands)
 
At December 31, 2017
 
Pass
 
Special
mention  *
 
Substandard  **
 
Doubtful
 
Loss
 
Loans
receivable
Personal Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
$
2,758,465

 
—

 
17,738

 
—

 
—

 
2,776,203

Home equity loans
 
1,300,277

 
—

 
10,078

 
—

 
—

 
1,310,355

Consumer loans
 
666,629

 
—

 
4,760

 
—

 
—

 
671,389

Total Personal Banking
 
4,725,371

 
—

 
32,576

 
—

 
—

 
4,757,947

Commercial Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate loans
 
2,216,326

 
83,537

 
154,863

 
 
 
—

 
2,454,726

Commercial loans
 
511,035

 
19,297

 
50,404

 
 
 
—

 
580,736

Total Commercial Banking
 
2,727,361

 
102,834

 
205,267

 
—

 
—

 
3,035,462

Total loans
 
$
7,452,732

 
102,834

 
237,843

 
—

 
—

 
7,793,409

 
 
 
 
 
 
 
 
 
 
 
 
 
At September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Personal Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
$
2,725,060

 
—

 
18,166

 
—

 
—

 
2,743,226

Home equity loans
 
1,302,036

 
—

 
11,399

 
—

 
—

 
1,313,435

Consumer loans
 
669,532

 
—

 
4,388

 
—

 
—

 
673,920

Total Personal Banking
 
4,696,628

 
—

 
33,953

 
—

 
—

 
4,730,581

Commercial Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate loans
 
2,196,510

 
56,118

 
146,258

 
—

 
—

 
2,398,886

Commercial loans
 
526,824

 
18,924

 
50,923

 
—

 
—

 
596,671

Total Commercial Banking
 
2,723,334

 
75,042

 
197,181

 
—

 
—

 
2,995,557

Total loans
 
$
7,419,962

 
75,042

 
231,134

 
—

 
—

 
7,726,138

 
 
 
 
 
 
 
 
 
 
 
 
 
At June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Personal Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
$
2,718,866

 
—

 
16,916

 
—

 
—

 
2,735,782

Home equity loans
 
1,307,022

 
—

 
8,699

 
—

 
—

 
1,315,721

Consumer loans
 
655,149

 
—

 
2,976

 
—

 
—

 
658,125

Total Personal Banking
 
4,681,037

 
—

 
28,591

 
—

 
—

 
4,709,628

Commercial Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate loans
 
2,178,996

 
67,826

 
149,841

 
—

 
—

 
2,396,663

Commercial loans
 
521,520

 
10,269

 
48,657

 
—

 
—

 
580,446

Total Commercial Banking
 
2,700,516

 
78,095

 
198,498

 
—

 
—

 
2,977,109

Total loans
 
$
7,381,553

 
78,095

 
227,089

 
—

 
—

 
7,686,737

 
 
 
 
 
 
 
 
 
 
 
 
 
At March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Personal Banking:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans
 
$
2,673,678

 
—

 
16,866

 
—

 
—

 
2,690,544

Home equity loans
 
1,311,707

 
—

 
9,212

 
—

 
—

 
1,320,919

Consumer loans
 
639,574

 
—

 
3,531

 
—

 
—

 
643,105

Total Personal Banking
 
4,624,959

 
—

 
29,609

 
—

 
—

 
4,654,568

Commercial Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate loans
 
2,187,545

 
48,189

 
142,740

 
—

 
—

 
2,378,474

Commercial loans
 
474,662

 
12,226

 
43,158

 
—

 
—

 
530,046

Total Commercial Banking
 
2,662,207

 
60,415

 
185,898

 
—

 
—

 
2,908,520

Total loans
 
$
7,287,166

 
60,415

 
215,507

 
—

 
—

 
7,563,088

 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Personal Banking:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans
 
$
2,680,107

 
—

 
18,059

 
—

 
—

 
2,698,166

Home equity loans
 
1,335,596

 
—

 
9,774

 
—

 
—

 
1,345,370

Consumer loans
 
639,044

 
—

 
3,917

 
—

 
—

 
642,961

Total Personal Banking
 
4,654,747

 
—

 
31,750

 
—

 
—

 
4,686,497

Commercial Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate loans
 
2,153,328

 
43,724

 
145,037

 
—

 
—

 
2,342,089

Commercial loans
 
469,993

 
17,192

 
41,576

 
—

 
—

 
528,761

Total Commercial Banking
 
2,623,321

 
60,916

 
186,613

 
—

 
—

 
2,870,850

Total loans
 
$
7,278,068

 
60,916

 
218,363

 
—

 
—

 
7,557,347

 

* Includes $8.6 million $8.9 million, $9.7 million, $12.4 million, and $9.4 million of acquired loans at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively.
** Includes $.46.7.million, $48.2 million, $44.8 million, $45.3 million, and $39.1 million of acquired loans at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively.




Northwest Bancshares, Inc. and Subsidiaries
Loan delinquency (Unaudited)
(Dollars in thousands)
 
 
 
December 31
2017
 
*
 
September 30
2017
 
*
 
June 30
2017
 
*
 
March 31
2017
 
*
 
December 31
2016
 
*
(Number of loans and dollar amount of loans)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans delinquent 30 days to 59 days:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
317

 
$
25,784

 
0.9
%
 
44

 
$
2,771

 
0.1
%
 
64

 
$
2,893

 
0.1
%
 
280

 
$
22,254

 
0.8
%
 
360

 
$
27,386

 
1.0
%
Home equity loans
 
218

 
7,461

 
0.6
%
 
191

 
7,330

 
0.6
%
 
111

 
4,058

 
0.3
%
 
125

 
4,586

 
0.4
%
 
179

 
6,805

 
0.5
%
Consumer finance loans
 
849

 
2,128

 
11.4
%
 
1,045

 
3,065

 
11.4
%
 
581

 
1,785

 
4.1
%
 
308

 
947

 
1.8
%
 
410

 
1,255

 
2.1
%
Consumer loans
 
1,295

 
10,912

 
1.7
%
 
1,119

 
9,510

 
1.5
%
 
818

 
6,793

 
1.1
%
 
714

 
6,210

 
1.1
%
 
1,087

 
8,613

 
1.5
%
Commercial real estate loans
 
53

 
8,315

 
0.3
%
 
27

 
5,753

 
0.2
%
 
38

 
4,629

 
0.2
%
 
60

 
9,364

 
0.4
%
 
61

 
10,377

 
0.4
%
Commercial loans
 
26

 
1,865

 
0.3
%
 
16

 
746

 
0.1
%
 
20

 
1,378

 
0.2
%
 
29

 
2,304

 
0.4
%
 
20

 
1,178

 
0.2
%
Total loans delinquent 30 days to 59 days
 
2,758

 
$
56,465

 
0.7
%
 
2,442

 
$
29,175

 
0.4
%
 
1,632

 
$
21,536

 
0.3
%
 
1,516

 
$
45,665

 
0.6
%
 
2,117

 
$
55,614

 
0.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans delinquent 60 days to 89 days:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
75

 
$
6,235

 
0.2
%
 
84

 
$
7,196

 
0.3
%
 
72

 
$
6,320

 
0.2
%
 
28

 
$
1,594

 
0.1
%
 
80

 
$
6,227

 
0.2
%
Home equity loans
 
72

 
2,871

 
0.2
%
 
73

 
2,390

 
0.2
%
 
44

 
1,522

 
0.1
%
 
36

 
1,145

 
0.1
%
 
62

 
1,563

 
0.1
%
Consumer finance loans
 
412

 
1,113

 
6.0
%
 
831

 
2,190

 
8.1
%
 
276

 
759

 
1.7
%
 
164

 
475

 
0.9
%
 
235

 
766

 
1.3
%
Consumer loans
 
463

 
3,351

 
0.5
%
 
473

 
3,283

 
0.5
%
 
347

 
2,475

 
0.4
%
 
266

 
1,766

 
0.3
%
 
401

 
2,843

 
0.5
%
Commercial real estate loans
 
25

 
2,539

 
0.1
%
 
22

 
7,666

 
0.3
%
 
14

 
3,368

 
0.1
%
 
19

 
3,034

 
0.1
%
 
25

 
4,495

 
0.2
%
Commercial loans
 
10

 
441

 
0.1
%
 
9

 
196

 
—
%
 
9

 
199

 
—
%
 
10

 
499

 
0.1
%
 
21

 
2,081

 
0.4
%
Total loans delinquent 60 days to 89 days
 
1,057

 
$
16,550

 
0.2
%
 
1,492

 
$
22,921

 
0.3
%
 
762

 
$
14,643

 
0.2
%
 
523

 
$
8,513

 
0.1
%
 
824

 
$
17,975

 
0.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans delinquent 90 days or more: **
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
158

 
$
13,890

 
0.5
%
 
143

 
$
12,190

 
0.4
%
 
145

 
$
12,053

 
0.4
%
 
139

 
$
12,326

 
0.5
%
 
169

 
$
13,621

 
0.5
%
Home equity loans
 
177

 
7,349

 
0.6
%
 
150

 
6,397

 
0.5
%
 
126

 
5,800

 
0.4
%
 
143

 
6,258

 
0.5
%
 
155

 
5,756

 
0.4
%
Consumer finance loans
 
74

 
199

 
1.1
%
 
124

 
332

 
1.2
%
 
188

 
536

 
1.2
%
 
169

 
471

 
0.9
%
 
228

 
743

 
1.2
%
Consumer loans
 
719

 
3,627

 
0.6
%
 
428

 
3,254

 
0.5
%
 
299

 
2,285

 
0.4
%
 
363

 
2,901

 
0.5
%
 
418

 
3,095

 
0.5
%
Commercial real estate loans
 
109

 
16,284

 
0.7
%
 
113

 
23,310

 
1.0
%
 
108

 
22,044

 
0.9
%
 
106

 
23,009

 
1.0
%
 
101

 
21,270

 
0.9
%
Commercial loans
 
37

 
3,140

 
0.5
%
 
45

 
4,177

 
0.7
%
 
39

 
3,642

 
0.6
%
 
39

 
2,744

 
0.5
%
 
37

 
3,520

 
0.7
%
Total loans delinquent 90 days or more
 
1,274

 
$
44,489

 
0.6
%
 
1,003

 
$
49,660

 
0.6
%
 
905

 
$
46,360

 
0.6
%
 
959

 
$
47,709

 
0.6
%
 
1,108

 
$
48,005

 
0.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans delinquent
 
5,089

 
$
117,504

 
1.5
%
 
4,937

 
$
101,756

 
1.3
%
 
3,299

 
$
82,539

 
1.1
%
 
2,998

 
$
101,887

 
1.3
%
 
4,049

 
$
121,594

 
1.5
%

* Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
** Includes purchased credit impaired loans of $1.4 million, $1.2 million, $1.2 million, $2.6 million, and $2.8 million at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016 respectively.





Northwest Bancshares, Inc. and Subsidiaries
Allowance for loan losses (Unaudited)
(Dollars in thousands)
 
 
Quarter ended
 
December 31,
2017
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
Beginning balance
$
56,927

 
62,885

 
61,104

 
60,939

 
63,246

Provision
6,525

 
3,027

 
5,562

 
4,637

 
2,145

Charge-offs residential mortgage
(162
)
 
(215
)
 
(372
)
 
(290
)
 
(710
)
Charge-offs home equity
(393
)
 
(528
)
 
(689
)
 
(649
)
 
(321
)
Charge-offs consumer finance
(2,900
)
 
(3,891
)
 
(782
)
 
(796
)
 
(1,003
)
Charge-offs consumer
(3,322
)
 
(3,002
)
 
(2,735
)
 
(2,864
)
 
(2,466
)
Charge-offs commercial real estate
(1,470
)
 
(1,901
)
 
(329
)
 
(474
)
 
(323
)
Charge-offs commercial
(785
)
 
(509
)
 
(929
)
 
(1,267
)
 
(2,489
)
Recoveries
2,375

 
1,061

 
2,055

 
1,868

 
2,860

Ending balance
$
56,795

 
56,927

 
62,885

 
61,104

 
60,939

 
 
 
 
 
 
 
 
 
 
Net charge-offs to average loans, annualized
0.34
%
 
0.47
%
 
0.20
%
 
0.23
%
 
0.23
%

 
Year ended December 31,
 
2017
 
2016
Beginning balance
$
60,939

 
62,672

Provision
19,751

 
13,542

Charge-offs residential mortgage
(1,039
)
 
(3,480
)
Charge-offs home equity
(2,259
)
 
(2,539
)
Charge-offs consumer finance
(8,369
)
 
(3,323
)
Charge-offs consumer
(11,923
)
 
(7,582
)
Charge-offs commercial real estate
(4,174
)
 
(3,740
)
Charge-offs commercial
(3,490
)
 
(4,217
)
Recoveries
7,359

 
9,606

Ending balance
$
56,795

 
60,939

 
 
 
 
Net charge-offs to average loans, annualized
0.31
%
 
0.21
%

 
December 31, 2017
 
Originated loans
 
Acquired loans
 
Total loans
 
Balance
 
Reserve
 
Balance
 
Reserve
 
Balance
 
Reserve
Residential mortgage loans
$
2,662,380

 
3,824

 
113,823

 
131

 
2,776,203

 
3,955

Home equity loans
1,051,558

 
4,072

 
258,797

 
762

 
1,310,355

 
4,834

Consumer finance loans
18,619

 
3,968

 
—

 
—

 
18,619

 
3,968

Consumer loans
553,366

 
8,475

 
99,404

 
890

 
652,770

 
9,365

Personal Banking loans
4,285,923


20,339


472,024


1,783


4,757,947


22,122

 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans
2,161,212

 
19,911

 
293,514

 
3,549

 
2,454,726

 
23,460

Commercial loans
521,198

 
10,322

 
59,538

 
891

 
580,736

 
11,213

Commercial Banking loans
2,682,410


30,233


353,052


4,440


3,035,462


34,673

 
 
 
 
 
 
 
 
 
 
 
 
Total loans
$
6,968,333


50,572


825,076


6,223


7,793,409


56,795






Northwest Bancshares, Inc. and Subsidiaries
Average balance sheet (Unaudited)
(Dollars in thousands) 
The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages. 
 
Quarter ended 
 
December 31, 2017
 
September 30, 2017
 
June 30, 2017
 
March 31, 2017
 
December 31, 2016
 
Average
Balance
 
Interest
 
Avg.
Yield/
Cost (h)
 
Average
Balance
 
Interest
 
Avg.
Yield/
Cost (h)
 
Average
Balance
 
Interest
 
Avg.
Yield/
Cost (h)
 
Average
Balance
 
Interest
 
Avg.
Yield/
Cost (h)
 
Average
Balance
 
Interest
 
Avg.
Yield/
Cost (h)
Assets:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans
$
2,746,992

 
28,373

 
4.13
%
 
$
2,732,546

 
28,279

 
4.14
%
 
$
2,721,445

 
28,245

 
4.15
%
 
$
2,718,904

 
27,309

 
4.02
%
 
$
2,766,693

 
28,165

 
4.07
%
Home equity loans
1,312,146

 
15,187

 
4.59
%
 
1,299,473

 
14,694

 
4.49
%
 
1,311,274

 
14,344

 
4.39
%
 
1,332,647

 
14,201

 
4.32
%
 
1,346,856

 
14,442

 
4.27
%
Consumer loans
633,023

 
8,004

 
5.02
%
 
617,754

 
7,627

 
4.90
%
 
595,170

 
7,405

 
4.99
%
 
580,836

 
7,219

 
5.04
%
 
571,108

 
7,580

 
5.28
%
Consumer finance loans
22,469

 
1,151

 
20.32
%
 
33,469

 
1,433

 
17.13
%
 
40,945

 
2,110

 
20.61
%
 
46,452

 
2,482

 
21.37
%
 
49,186

 
2,503

 
20.36
%
Commercial real estate loans
2,442,528

 
28,251

 
4.53
%
 
2,389,969

 
27,234

 
4.46
%
 
2,430,594

 
27,071

 
4.41
%
 
2,456,070

 
26,562

 
4.33
%
 
2,467,569

 
27,863

 
4.42
%
Commercial loans
588,420

 
6,739

 
4.48
%
 
593,143

 
6,659

 
4.39
%
 
554,506

 
6,087

 
4.34
%
 
522,847

 
5,515

 
4.22
%
 
527,330

 
5,682

 
4.27
%
Total loans receivable (a) (b) (d)
7,745,578

 
87,705

 
4.49
%
 
7,666,354

 
85,926

 
4.45
%
 
7,653,934

 
85,262

 
4.47
%
 
7,657,756

 
83,288

 
4.41
%
 
7,728,742

 
86,235

 
4.44
%
Mortgage-backed securities (c)
581,055

 
3,016

 
2.08
%
 
607,454

 
3,118

 
2.05
%
 
592,917

 
2,987

 
2.02
%
 
471,674

 
2,222

 
1.88
%
 
482,707

 
2,166

 
1.79
%
Investment securities (c) (d)
301,268

 
1,495

 
1.98
%
 
352,813

 
1,690

 
1.92
%
 
372,398

 
1,796

 
1.93
%
 
377,819

 
1,881

 
1.99
%
 
401,602

 
1,950

 
1.94
%
FHLB stock
10,066

 
78

 
3.07
%
 
7,748

 
63

 
3.23
%
 
7,602

 
50

 
2.64
%
 
7,305

 
59

 
3.28
%
 
7,575

 
285

 
4.54
%
Other interest-earning deposits
13,515

 
59

 
1.71
%
 
71,482

 
243

 
1.33
%
 
208,141

 
536

 
1.02
%
 
294,391

 
660

 
0.90
%
 
325,889

 
300

 
0.36
%
Total interest-earning assets
8,651,482

 
92,353

 
4.24
%
 
8,705,851

 
91,040

 
4.15
%
 
8,834,992

 
90,631

 
4.11
%
 
8,808,945

 
88,110

 
4.06
%
 
8,946,515

 
90,936

 
4.04
%
Noninterest earning assets (e)
709,753

 
 

 
 
 
755,026

 
 

 
 
 
716,913

 
 

 
 
 
799,569

 
 

 
 
 
677,888

 
 
 
 
Total assets
$
9,361,235

 
 

 
 
 
$
9,460,877

 
 

 
 
 
$
9,551,905

 
 

 
 
 
$
9,608,514

 
 

 
 
 
$
9,624,403

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and shareholders’ equity:
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 
 
 
 
 
Savings deposits
$
1,655,798

 
763

 
0.18
%
 
$
1,681,777

 
776

 
0.18
%
 
$
1,714,290

 
768

 
0.18
%
 
$
1,702,528

 
755

 
0.18
%
 
$
1,668,492

 
771

 
0.18
%
Interest-bearing demand deposits
1,419,352

 
331

 
0.09
%
 
1,435,143

 
297

 
0.08
%
 
1,451,787

 
283

 
0.08
%
 
1,422,284

 
116

 
0.03
%
 
1,431,671

 
85

 
0.02
%
Money market deposit accounts
1,734,444

 
1,017

 
0.23
%
 
1,789,082

 
1,048

 
0.23
%
 
1,839,693

 
1,064

 
0.23
%
 
1,879,292

 
1,074

 
0.23
%
 
1,890,220

 
1,101

 
0.23
%
Time deposits
1,421,569

 
3,860

 
1.08
%
 
1,449,830

 
3,674

 
1.01
%
 
1,518,650

 
3,711

 
0.98
%
 
1,573,574

 
3,520

 
0.91
%
 
1,643,785

 
3,902

 
0.94
%
Borrowed funds (f)
159,599

 
187

 
0.46
%
 
106,282

 
49

 
0.18
%
 
126,685

 
55

 
0.17
%
 
136,872

 
58

 
0.17
%
 
143,540

 
61

 
0.17
%
Junior subordinated debentures
111,213

 
1,163

 
4.09
%
 
111,213

 
1,150

 
4.05
%
 
111,213

 
1,185

 
4.22
%
 
111,213

 
1,167

 
4.20
%
 
111,213

 
1,171

 
4.12
%
Total interest-bearing liabilities
6,501,975

 
7,321

 
0.45
%
 
6,573,327

 
6,994

 
0.42
%
 
6,762,318

 
7,066

 
0.42
%
 
6,825,763

 
6,690

 
0.40
%
 
6,888,921

 
7,091

 
0.41
%
Noninterest-bearing demand deposits (g)
1,599,834

 
 

 
 
 
1,573,112

 
 

 
 

 
1,544,953

 
 

 
 

 
1,506,268

 
 

 
 
 
1,493,528

 
 
 
 
Noninterest bearing liabilities
57,956

 
 

 
 
 
116,021

 
 

 
 

 
59,277

 
 

 
 

 
106,578

 
 

 
 

 
77,827

 
 
 
 
Total liabilities
8,159,765

 
 

 
 
 
8,262,460

 
 

 
 

 
8,366,548

 
 

 
 

 
8,438,609

 
 

 
 

 
8,460,276

 
 
 
 

Shareholders’ equity
1,201,470

 
 

 
 
 
1,198,417

 
 

 
 

 
1,185,357

 
 

 
 

 
1,169,905

 
 

 
 

 
1,164,127

 
 
 
 

Total liabilities and shareholders’ equity
$
9,361,235

 


 
 
 
$
9,460,877

 
 

 
 

 
$
9,551,905

 
 

 
 

 
$
9,608,514

 
 

 
 

 
$
9,624,403

 
 
 
 

Net interest income/ Interest rate spread
 

 
85,032

 
3.79
%
 
 

 
84,046

 
3.73
%
 
 

 
83,565

 
3.69
%
 
 

 
81,420

 
3.66
%
 
 

 
83,845

 
3.63
%
Net interest-earning assets/ Net interest margin
$
2,149,507

 
 

 
3.93
%
 
$
2,132,524

 
 

 
3.86
%
 
$
2,072,674

 
 

 
3.78
%
 
$
1,983,182

 
 

 
3.75
%
 
$
2,057,594

 
 

 
3.75
%
Ratio of interest-earning assets to interest-bearing liabilities
1.33X

 
 

 
 
 
1.32X

 
 

 
 

 
1.31X

 
 

 
 

 
1.29X

 
 

 
 
 
1.30X

 
 
 
 

 
(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.
(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.
(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f) Average balances include FHLB borrowings and collateralized borrowings.
(g) Average cost of deposits were 0.30%, 0.29%, 0.29%, 0.27% and 0.29%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.46%, 4.42%, 4.44%, 4.38% and 4.41%, respectively, Investment securities - 1.66%, 1.62%, 1.62%, 1.67% and 1.61%, respectively, Interest-earning assets - 4.20%, 4.11%, 4.08%, 4.02% and 4.00%, respectively. GAAP basis net interest rate spreads were 3.75%, 3.69%, 3.66%, 3.62% and 3.59%, respectively, and GAAP basis net interest margins were 3.89%, 3.82%, 3.75%, 3.71% and 3.71%, respectively.




Northwest Bancshares, Inc. and Subsidiaries
Average balance sheet (Unaudited)
(Dollars in thousands)
 
The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.
 
Year ended December 31,
 
2017
 
2016
 
Average
Balance
 
Interest
 
Avg.
Yield/
Cost (h)
 
Average
Balance
 
Interest
 
Avg.
Yield/
Cost (h)
Assets:
 

 
 

 
 

 
 

 
 

 
 

Interest-earning assets:
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
$
2,730,055

 
112,206

 
4.11
%
 
$
2,749,314

 
114,991

 
4.18
%
Home equity loans
1,313,789

 
58,426

 
4.45
%
 
1,220,220

 
52,671

 
4.32
%
Consumer loans
590,439

 
30,253

 
5.12
%
 
501,587

 
25,348

 
5.05
%
Consumer finance loans
35,761

 
7,177

 
20.07
%
 
50,950

 
10,582

 
20.77
%
Commercial real estate loans
2,429,644

 
109,118

 
4.43
%
 
2,392,290

 
107,231

 
4.41
%
Commercial loans
564,600

 
25,000

 
4.37
%
 
477,095

 
20,499

 
4.23
%
Loans receivable (a) (b) (d)
7,664,288

 
342,180

 
4.46
%
 
7,391,456

 
331,322

 
4.48
%
Mortgage-backed securities (c)
563,696

 
11,343

 
2.01
%
 
467,560

 
8,540

 
1.83
%
Investment securities (c) (d)
350,870

 
6,862

 
1.96
%
 
344,575

 
7,612

 
2.21
%
FHLB stock
8,186

 
250

 
3.05
%
 
26,386

 
1,371

 
5.20
%
Other interest-earning deposits
158,229

 
1,499

 
0.93
%
 
100,336

 
543

 
0.53
%
Total interest-earning assets
8,745,269

 
362,134

 
4.14
%
 
8,330,313

 
349,388

 
4.19
%
Noninterest earning assets (e)
757,249

 
 

 
 
 
781,274

 
 

 
 

Total assets
$
9,502,518

 
 

 
 
 
$
9,111,587

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and shareholders’ equity:
 

 
 

 
 
 
 

 
 

 
 

Interest-bearing liabilities:
 

 
 

 
 
 
 

 
 

 
 

Savings deposits
$
1,688,451

 
3,062

 
0.18
%
 
$
1,500,655

 
3,218

 
0.21
%
Interest-bearing demand deposits
1,432,134

 
1,027

 
0.07
%
 
1,209,325

 
462

 
0.04
%
Money market deposit accounts
1,810,083

 
4,203

 
0.23
%
 
1,473,897

 
3,621

 
0.25
%
Time deposits
1,490,378

 
14,765

 
0.99
%
 
1,630,424

 
16,164

 
0.99
%
Borrowed funds (f)
132,350

 
348

 
0.26
%
 
592,581

 
10,274

 
1.73
%
Junior subordinated debentures
111,213

 
4,666

 
4.14
%
 
111,213

 
4,560

 
4.03
%
Total interest-bearing liabilities
6,664,609

 
28,071

 
0.42
%
 
6,518,095

 
38,299

 
0.59
%
Noninterest-bearing demand deposits (g)
1,556,511

 
 

 
 
 
1,245,320

 
 

 
 

Noninterest bearing liabilities
92,611

 
 

 
 
 
188,381

 
 

 
 

Total liabilities
8,313,731

 
 

 
 

 
7,951,796

 
 

 
 

Shareholders’ equity
1,188,787

 
 

 
 

 
1,159,791

 
 

 
 

Total liabilities and shareholders’ equity
$
9,502,518

 
 

 
 

 
$
9,111,587

 
 

 
 

Net interest income/ Interest rate spread
 

 
334,063

 
3.72
%
 
 

 
311,089

 
3.60
%
Net interest-earning assets/ Net interest margin
$
2,080,660

 
 

 
3.82
%
 
$
1,812,218

 
 

 
3.73
%
Ratio of interest-earning assets to interest-bearing liabilities
1.31X

 
 

 
 

 
1.28X

 
 

 
 

(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.
(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.
(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f) Average balances include FHLB borrowings and collateralized borrowings.
(g) Average cost of deposits were 0.29%, and 0.33%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.44% and 4.45%, respectively, Investment securities - 1.65% and 1.78%, respectively, Interest-earning assets - 4.10% and 4.15%, respectively. GAAP basis net interest rate spreads were 3.68% and 3.56%, respectively, and GAAP basis net interest margins were 3.78% and 3.69%, respectively.